Kuala Lumpur, 9 September 2022 – Persatuan Insurans Am Malaysia (PIAM) and its members welcome the decision issued by the Competition Appeal Tribunal (“CAT”) on 2 September 2022 unanimously setting aside the Final Decision of the Malaysia Competition Commission (“MyCC”) dated 14 September 2020 against PIAM and 22 general insurers in its entirety. The financial penalties imposed on the insurers in all amounting to an aggregate quantum of penalty of RM173,655,300 is consequently also set aside. The aggregate quantum of penalty excludes a 25% reduction in light of the unprecedented COVID-19 pandemic.
By way of background, the MyCC had found that PIAM and the insurers infringed section 4 of the Competition Act 2010 in respect of an arrangement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia(“FAWOAM”) on the minimum hourly labour rates and spare part prices for six commonly used vehicles namely Proton, Perodua, Naza, Nissan, Toyota and Honda (“arrangement”).
The CAT’s decision in overturning the MyCC’s Final Decision recognises that PIAM and the insurers’ participation in the arrangement is not a price fixing agreement or cartel. The arrangement – which was facilitated by Bank Negara Malaysia – was put in place to resolve the protracted dispute between insurers and repairers over spare parts trade discounts and labour rates which had adversely affected consumers.
PIAM thanks the CAT for its time and effort to consider the voluminous submissions and evidence presented. PIAM was represented by Khoo Guan Huat of Skrine and Shanthi Kandiah of SK Chambers.
About General Insurance Association of Malaysia (PIAM)
PIAM is the national trade association of licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 25 member companies. More information on PIAM can be obtained from its website: www.piam.org.my.
Media Relations Contact:
(Ms) Christina Thomas
Head, Corporate Communications & Public Relations, PIAM
Tel : +603-2274 7399
Fax : +603-2274 5910
E-mail : firstname.lastname@example.org